Mortgage Payoff Calculator
See how extra payments can help you pay off your mortgage faster and save thousands in interest.
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Monthly Payment
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Interest Saved
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Time Saved
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New Payoff Date
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Detailed Comparison
| Without Extra | With Extra | |
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| Payoff Date | -- | -- |
| Total Interest | -- | -- |
| Total Paid | -- | -- |
How the Mortgage Payoff Calculator Works
This calculator uses the standard mortgage amortization formula to compute your monthly payment, then simulates every month of your loan to show exactly how extra payments reduce your balance faster.
The monthly payment formula is: M = P × [r(1+r)n] / [(1+r)n − 1], where P is the principal, r is the monthly interest rate, and n is the total number of payments.
Each extra dollar you pay goes directly to reducing your principal. This means less interest accrues the following month, creating a compounding effect that accelerates your payoff.
Frequently Asked Questions
How much can I save by making extra mortgage payments?
Even small extra payments can save you tens of thousands of dollars in interest over the life of your loan. For example, adding $200 per month to a $300,000 mortgage at 6.5% can save you over $80,000 in interest and cut more than 7 years off your loan.
Is it better to make extra payments or invest the money?
It depends on your interest rate and expected investment returns. If your mortgage rate is higher than what you expect to earn from investments (after taxes), paying down the mortgage may be the better choice. The guaranteed "return" from paying off debt equals your interest rate.
Should I refinance or make extra payments?
Refinancing lowers your interest rate but typically involves closing costs. Extra payments reduce your principal without any fees. Consider refinancing if you can get a significantly lower rate, and use extra payments alongside your current or new mortgage to accelerate payoff further.
Does my lender apply extra payments to principal automatically?
Not always. Some lenders apply extra payments to future scheduled payments instead of the principal. Contact your lender to ensure extra payments are applied directly to the principal balance, or specify "apply to principal" when making payments.
Are there any penalties for paying off my mortgage early?
Some mortgages include prepayment penalties, though these have become less common. Check your loan agreement or ask your lender. Most conventional mortgages originated after 2014 do not have prepayment penalties due to regulations under the Dodd-Frank Act.